Original subtitles

Well next books.

This is the fourth of eight installments for the first

month of the ICT ministership.

We are covering equilibrium versus discs.

Now, again, just as a forewarning, uh, for thumb, some of you were actually.

Pupils of mine prior to me starting this mentorship.

This is going to seem a little bit elementary initially, but I promise

I'll add something to it that, uh, may.

Bring a little bit more depth that the understanding of what optimal

trade entry is, um, long time ago, back in 2010, I introduced a simple

idea of looking at swing projections.

Retracements and identifying what would be deemed as optimal trade

entry and everyone that saw it obviously fell in love with it.

Liked it.

It was easy for them to see they would apply it really quick to the chart.

And I think the reason why is because it had a indicator applied to it and

it being the Fibonacci, not Fibonacci doesn't have any magic as an Ebony.

Yeah, significance by itself, and yet to understand where the

market may want to reach for.

Um, so there's going to be a certain measure of prognostication on your part.

If it doesn't do everything for you.

So, um, I wanted to draw your attention to.

Looking at where markets are most likely to create by conditions.

Now, this is not by signal entries.

This is just framing a context initially, as a new trader, someone new to technical

analysis, someone new to my principles.

It's going to give you a foundation so that we can go into the chart and start

looking at these things and measure them.

And then study them.

Okay.

So all this has meant is to give you a framework to work

within in your demo account.

Everyone should be working inside the forks LTD demo account as I stablish,

um, at the beginning of this mentorship.

So we have multiple price swings in here on this daily chart, and

we're looking at it primarily daily.

Uh, initially for our setups, if you're a new trader.

Okay.

And you seemed overwhelmed and you probably heard me talk about certain

things already in this mentorship.

When we maybe watch some of my videos on YouTube or my, uh, websites,

uh, tutorial section, and you heard terms that went right over your head.

Some of the terms are created by me.

Some of them are industry standards.

Uh, so.

Are going to require a little bit more description about what they

mean later on in the mentorship.

So if you hear something, even in this presentation, this make a note of

it in your notes, and then obviously you'll pick up the understanding

as you go deeper every month.

There's something new, but for now I want you to focus on a simple question.

If a trader believes that the market's going to go higher,

what would frame that context?

What would give the trader that conclusion to trust buying a specific market?

Like what goes in, what goes into making that decision?

Well, the first thing I want you to understand this is this is going to

be like the very first baby step to understanding institutional order.

The first thing you need is movement.

You have to understand that to be a buyer.

There has to be a willingness of somebody with bigger, uh, bigger

pockets than you, more money than you.

And they are the ones that move price around and they are the banks.

Okay.

Uh, they're they're only going to let price go higher

when it suits their purpose.

Okay.

So it's not going to be a supply and demand factor.

It's going to be a greed factor.

They want money.

Okay.

They're in the business of making money after all, that's

their nature of their business.

That's a bank.

So if we are looking for buying opportunities, okay.

Many retail traders look for all of these patterns and indicator based ideas.

And I want you to focus primarily on price.

Price alone will give you everything you'll ever need in terms of

indicating a higher or lower price.

And it'll actually give you the actual specific entries and your exits.

You don't need anything else outside of a price chart.

Okay.

The open high, low, and close does everything for you.

I want you to look at this low down here, and I want you

to look at this high up here.

Okay.

Do you see how that is the biggest price swing on this entire chart?

So between all August 14th, all the way to the present time in

September, there is only been one major price swing higher and lower.

So if we take a Fibonacci level, okay.

And I'm only going to use Fibonacci to illustrate equilibrium,

kickers, that first have to establish what equilibrium is.

This is the largest price range.

Okay.

The market range.

That's presently being traded in now, what do I mean by present market range?

This is the highest range we've seen.

Okay.

In the last month or so.

So if we look at this range and I'm going to scroll back here so

you can see it, there's nothing.

More significant than that, except for this one back here, but we're

going to primarily use us and it has a very strong reaction.

We can use these back here.

Okay.

And I'll do it for completeness sake later on in the video.

But for now, I want you to see, we have very strong, impulsive.

Then it comes back retraces then didn't have another strong, impulsive move away.

It comes all the way up here to the height.

Okay.

When we say impulsive price move, or what will we refer to as impulsive price swing

going forward throughout this mentor?

That is the indication that there has been displacement.

No displacement is where someone with a lot of money, okay.

Comes into the marketplace and they have a strong conviction to move price higher.

We already know that price is going to be set by central bank.

So if they're letting price run this high they're offering at a higher price,

as long as there's buyers coming in, they're going to keep offering that price.

As long as they keep finding buyers, as they keep raising price up, they'll keep

expanding price higher, higher, higher until there is no longer any interest for

them to pair up orders with participants.

Okay.

Other open interest in the marketplace.

So they'll allow price to retreat a little bit until they can get more

buy stops above the marketplace.

It is not.

A buyer, buyer, buyer, buyer, buyer, buyer, buyer, market, and

then keep them stretching price.

They have already bought down here and then they're allowing price to be offered

to the marketplace at higher prices.

Okay.

And as that happens there, all they're doing is selling off their positions.

They establish at a lower.

Okay.

From here, the banks are assume long positions in here.

They accumulate long positions.

Once they accumulate a position, they allow price to go higher.

Okay.

Once that price goes higher, higher, higher, higher, higher, it keeps

going higher until their position is funded and they no longer

want any more, um, position held.

So they're gonna be looking for liquidation areas where they

know that there's going to be willing participants to buy.

That's going to be above this old high back here.

Why would they want to take price above that OHI here?

Because there's going to be buy stops on a fund level.

That means big money.

Um, manage funds.

We'll have stop loss orders rate above that high.

And I'm going to go into details in this mentorship about where stops

are, how to, uh, how to pick out institutional funds levels, where

their stops are at where high target, big money moves are going to occur.

All those things will be taught to you.

But for now, I just want to start your very small, because then there's a lot

of folks that just started with this mentorship, and they've never really

been through the complete library.

My, uh, concepts or they have, haven't really exposed

themselves to technical analysis.

So all this seems Greek to them.

And I don't mean that F anybody that may be Greek, but it's

an expression in the states.

It means it's alien to them.

But the first thing I want you to look for in price is you want

to see impulsive price swings.

Okay.

And since we're primarily looking for discount margin, Okay.

And relative terms to equilibrium, we first have to understand

what an impulse price swing is.

So let me take the flip off real quick and go back to that price leg right here.

Let me take all this stuff off over here.

Okay.

So we have one big strong impulsive price swing right here.

It comes off this low and rallies up.

We don't need to know what caused the buydown here.

It's not interesting at all to me.

Okay.

We don't know this price link is going to start until I'm sorry.

We don't know this price like is here okay.

Until it forms.

So I'm giving you a perspective studying in hindsight, the

low to this high in here.

Okay.

That rally up or that impulsive price swing.

We only require price to start coming down off of that.

And it takes at least four candles, no matter what timeframe you're

on, you need four candidates.

Okay.

From when the market makes a low and starts rallying up.

What you're going to look for is once you see a high form, let me zoom in.

Once you see the high form, you need four candles.

Why four candles, you need to have one candle to the left.

One candle in the center of the most highest one than a

lower candle to the right.

That's a swing high.

And then you got to see price go lower.

When that happens, you start waiting for price to retrace, back to equal.

Now, what is equilibrium?

Equilibrium is a midway point of a price move

okay.

So we were mentioning the high from this low, you take your fib, you draw

it up to the low and you drop it.

Equilibrium is over here.

Let me scrunch this up a little bit more.

Okay.

So we have this price leg.

So impulsive price swing goes higher.

As soon as we get three candles then, and only then will we start

watching for price to come down to the equilibrium price point?

And that is basically the Fibonacci level 50%.

Okay.

We're looking for price to come down to that level.

And as soon as it comes back to that level, and we're on a daily chart,

we go down into a lower timeframe and we hunt buying opportunities.

Now I'm not teaching you buy.

Entry signals.

Okay.

I'm giving you context of how to discern when the market goes to

discount and when it's at a premium and we're not trading at premiums.

Okay.

Well, I'll teach you how to use premiums, uh, the first video of next week.

Okay.

So, um, we're only focusing primarily on equilibrium versus discount.

We have a price swing that moves from a low aggressively.

We don't do anything until we start seeing a down move and it

has to happen after three candles, basically making a swing high.

Now swing high looks like this.

Okay.

You can see it has a high in a candle to the left.

It's lower and count to the right that's lower.

That's a swing high.

And then once that swing high forms, we're waiting for the fourth candle.

Okay, let's start coming lower.

In other words, we're looking for four candles to start

turning around when that happens.

Okay.

That gives you now you're allowed to start looking for the market

to come down into equilibrium.

That means that 50% level.

Okay.

Once you're on the 50% level and you're in a hard timeframe and we start everything

at a daily chart at the daily chart, we're no, we know now that between the low.

In the high here, the market now has gone back to equilibrium.

So it's at fair value or at fair market value.

If you get something at fair market value, obviously you're not paying

a premium, but you're not really getting a discount either, but it's

still a neutral to bolus condition.

That means you're not buying at an inflated price.

So this time, period right here to mark is offering an opportunity to be long.

I'm not going down the lower timeframes today.

I'm not going to teach you that today.

Only thing I'm giving you right now is developing context around the

daily institutional price levels that are arrived at on the daily.

And all you're looking for is impulsive price swings, first letting price,

settle back down into equilibrium.

And then we discern what we're going to do once we, when we get to that level,

as you see, without going into lower timeframes, the price does rally again,

where does it rally back up to its old institutional order flow reference

point, which is an old high back here.

So it goes right above that previous high.

You see that now the market trades off again and goes lower.

We have now a new, new range.

We have to now put the Fibonacci on this high, keeping it off this same low.

Now, why did I do that?

Because this price law has not been violated.

It only retraced down to here and rallied up again.

Then we, we wait for, uh, three candles, the high candle to the left.

There's a lower one to the right.

There's a lower one.

This is probably a Sunday.

And even still, this is one.

Either way you don't want to count Sundays by the way, empty for one L uh, Forex.

LTD does give you the Sunday candle.

So you got to factor that out.

Don't don't count Sunday's candle because it's an event.

So that's probably going to end up becoming this case.

And they'll hear once you get the down candle here that the market has, um,

in fact turned, it's starting to go lower notice what's happening here.

We're not rushing.

We don't need the cats to high.

Okay.

It gives us all, all kinds of time to wait and plan and build an idea about

what it is specifically we're going to do.

When price gets to equilibrium, price drops down a little

bit more than it goes up.

What do we do the whole time?

This is happening?

Nothing.

We're not doing anything.

This is a higher timeframe principle.

Most of you are all begging for a higher timeframe principle to trade with.

This is the beginning building blocks to that.

Okay.

Market trades, lower, lower.

What do we do here?

Not doing anything here yet.

Okay.

Nothing train low or low or low or lower sudden.

Boom.

It hits equilibrium over here.

Now we can start studying.

We want to study price on the lower timeframes.

We'll look for entries, but not until I'm not teaching you entry signals here.

I'm giving you context.

As soon as we get to equilibrium, we are now at fair market value.

So the market is permitted to be bought.

Okay.

At the banking level, they will be able to buy at these levels because

there's not at a premium based market.

The levels that are trading at this level here.

All right.

Fair market value.

Now banks are just like anyone else.

If you go to the grocery store and you see steaks for $10, uh,

I don't even know what they cost.

My wife does all the shopping, the a, if a state costs 10 and

dollars at the, at the market.

Uh, and it drops down to $8 and 50 cents a steak.

That's probably, you know, a discount and it may not be that price.

I don't know.

But for the sake of analogy we're using it.

That means that we are now at a discount.

Anything below equilibrium is now a discount market.

When markets go below equilibrium, they do not spend much time below equilibrium.

And there's usually a very dynamic price move away from that.

Especially if the context behind the marketplace is bullish.

Now, looking at this framework we have here, we had an impulsive price swing.

Oh, read a little tiny little trace and came back to equilibrium.

Rallied.

One more time.

Took out the high, um, high over here and then sold off.

Okay.

Went back down into equilibrium again and went to a discount

below 50% of the impulse price swing that is now at a distance.

So the market on the banking perspective is that this now is now

at a discount is allowed to be bought.

Now you just don't go indiscriminately in there trying to buy it just

because it goes back to 50% or less.

That's not enough.

You've got to have more information, but for now, I just want to give you when

we have a bullish scenario for a market.

Okay.

If we think of pears bullish, we look for impulsive price swings on the daily

chart, the frame, higher timeframe, ideas.

There's other trades that you can take in lower timeframes in between these,

but for now, I want you primarily focused on just this, because it'll

give you all the things that you've probably been lacking with hard timeframe

ideas, and the beginning blocks of directional bias, because it's done.

It gives you a lot of time to you.

Don't have to be sitting in front of an intraday chart.

You don't have to worry about the boss catching you doing something

and steel on time at the job.

This gives you a lot of flexibility and time to prepare for an idea to trade on.

So when we get the equilibrium, we know that we are at fair market value.

It's a market that could be bought if we are bolus, but we can't buy it.

We can't buy above this level up to here.

Okay.

That's that's the point, what I'm saying, the best buys come at equal.

Or less anything below equilibrium or a 50% level is viewed as a discount.

Now, the wonderful thing about understanding this is when a market's

at discount and its underlying a basis is bullish discount prices.

Don't stay in the market very long.

The market's going to want to run away from that really quick,

because this is a daily chart.

This isn't that bad in terms of how much time it spends.

Below equilibrium, but you can see finally it explosively moved away from that and

rally up through what I asked you guys to do in the third tutorial, which was

to on your charts and mark out areas of where equal highs would be and where old

highs would be the market rallies from that price point and goes right back up

and clear that these equal highs, when these equal Heights are taken out, if

you were a trader that only took a long in this area, And it don't have to be

an exact science as far as where it was.

We're just going to speak in general terms.

If you went along somewhere in this small little consolidation before the expansion.

Okay.

Between buying the 95 big figure, roughly up to these

equal highs, that's about 98, 50.

Yeah, about 98 50 and you bought around 95 50.

So that's 300 pips move on a signal that would have formed.

It took a little bit more.

To, uh, come to fruition, but based on equilibrium and discounting, okay.

You can frame the ideas in which the market should react.

It should be viewed as a discount across the board.

And if there is in fact bullish, the banks will Dogpile on this and send the

price higher and it should be with quick dynamic price action, understanding

where it should be reaching for it.

Above old highs above equal highs.

Okay.

Above, um, closing a range.

Okay.

Which we don't really have in here, but I'm just showing you

just some one example here already.

The first one it's 300 pips.

Okay.

Then we have another price move all the up here.

This there's no real retracements in here.

Cause lodge, we have a high equals a little bit lower here.

And then here's one here.

If we would have measured the low.

To this high, it doesn't come down.

The 50% is nowhere near.

I can eyeball that.

And you can probably do that too, but I probably might miss this, do it.

Cause I'm probably going to have some of you folks that

are from different countries.

Having a hard time, understanding my English, let alone four X, if

we would've measured just this impulsive price swing right here.

Notice that even though we had the candle here lower on the fourth one, it had

an up-close, but it was still lower.

Nothing came back down the equilibrium, it stayed at a high price and the

kids kept going higher and higher and higher and higher and higher.

So if we go back to adding the fed to that initial price low here,

and we stretch it because now we, we broke, we broke this high.

We're going to keep draw on the fifth up on swings that move up dynamically.

So we have this big parent price.

So now we're going to wait until price gets back down to equilibrium.

When do we start waiting for that?

When the market shows a swing high, which it does here, then we

start counting to the fourth candle where it drops to the fourth candle

has to move lower or be lower.

Then the highest candle that makes a swing high, it's all, it's a very simple thing.

And then from there we just start waiting and then countdown, every time it goes

down to low, low, lower, low, low, low.

And finally, what's your hit rate?

Equilibrium at set 50% marks.

And as it does that, the market is at a fair market value so that it

can be bought on the banking level.

It cannot be bought until it gets to that level or below it.

They won't come in and they won't do it.

It's not based on Fibonacci.

I'm just showing you in terms of.

Equilibrium between old highs and old lows it's cyst evaluation, marker.

That's all it is.

Okay.

So the algo will kick into a buy mood in here, especially if they have orders at

that level or just a little bit below it.

And if they are there, you'll know it because the price will react immediately.

Like it does here.

It hits it one time.

It doesn't have another camera.

If I touch it, this one gets close to it, but it still rallies away.

Okay.

So now watch what happens.

We have another impulse swing.

Price moves away from an area where we expect it to rally.

Why do we expect it to rally there?

Because between this low and this high price should be sensitive

here on the upside and it rallies now watch what happens.

This is a big, big step.

I'm going to keep this Fibonacci just like it is.

I'm going to add another one right on the low that starts here and it runs up.

See that.

So between this low up to this high, why we count in this swing?

Why are we using this Fibonacci price, swing Michael and not something else?

Because this one has showed reaction to want to move away from an area.

We would expect it to move.

And now watch we have a swing high here's a high, lower high, lower high,

and this candle is lower than the one on the highest portion of the swing hikes.

So now we start counting down until price gets to what equilibrium or less.

The next candle doesn't do it.

This candle does.

It goes right down through equilibrium, down into what

we call optimal trade entry.

So when we get below equilibrium all this time in here, look how

much time it gives you opportunities to get in at 62 to 70 and a half

percent, which is optimal trade entry.

Sweet spot.

If you look at that price, gathers up more orders and rallies away aggressively.

Watch it happens again.

Now we have another reference point.

This is where we expected price to react and it did.

It gives us another price leg before all the way up here.

From this low to this high, we get high, a low, a lower low on this one,

and we're already below equilibrium.

Look at the buyers of the candle.

We win.

I'm not going to talk about water blocks here, as much as I want to right

now, it's for some of you guys that do know in a block, you'd probably would

know what I'm talking about before.

I would say it, but in here we expect price to be sensitive in here.

Okay.

Because we're below 50% or equilibrium.

We're at a discount price should not spend much time there at all.

It quickly rallies away.

Okay.

And it comes back down.

I can draw a fib on this low to this high America.

Let me just do it.

That's after all.

That's the context of what we're teaching here today.

Right?

Colin AFib on all these levels where they should be reaction.

Okay.

Market rallies up.

Here's the swing high.

The next candle, the fourth candle has gotta be lower.

It does it trades through equilibrium right into optimal trade entry.

Does it stay there long?

No, it rallies up comes back.

It doesn't break.

The high comes back one more time.

The equilibrium, and then aggressively moves away.

And expand, expand, expand, expand, expand.

And then finally it gives us a reversal, but nonetheless it, that right there

from buying and here to here, let's look at that in terms of range,

300 pips again.

Okay.

You're not, it's not every, not every.

Day setups.

Okay.

But it's giving you significant setups.

If we look at the moves that we called in here using what I'm showing you.

If you bought down in here, just to this level here, it's 140 pips to here.

It's 272 pips.

If you held onto it, it's 400 pips.

This price, move in here.

Price should be sensitive right here.

I'll throw it in here.

Order blocks right here.

You'll learn about those, but the Fibonacci we just showed you.

It's still there.

And watch this.

We had a price swing here that reacted off of a level that should be bullish.

Here's our new price leg here.

We haven't high in a higher high, so we have a higher magnitude price swing.

That's going on.

We wait for the swing high to form down candles right here.

Equilibriums right here into the optimal trade entry, which is discount.

It's gotta be below equilibrium.

If the market is below equilibrium, we are in a discount market and it should

not go below the old bullet forms.

In other words, wherever there's the impulse price swing is that low.

It starts from it.

Can't go below.

So think about what it's already given you, it's given you a

framework to work with it.

Okay.

I don't need to know exactly where I'm buying it.

I just know a general area.

I can fine tune that down into lower timeframes.

When we do top down analysis, I'll teach that.

But for now, if we understand this is the low, we draw our fit from a stop loss has

to be below there when this timeframe, so we can buy in this area here.

Put a stop-loss down here define the risk between that.

And then how much of a rest of the world will, will we get based on how

far should reach up every time, every time that price makes an impulse price

swing higher, we just wait for it to come back down and there's no rush.

We just wait.

It takes three candles on the third candle.

It can hit equilibrium on Google.

But we needed to simply wait for the swing high, that form,

and then you watch it drop down.

Once it drops down, you know what you're going to be expecting.

The price move should be explosive to the upside because the market goes

back to a discount below equilibrium.

It can be a sensitive at equilibrium, but here's what we're supposed

to be focusing primarily on.

You want high odds trades, you want high probability, explosive

price action moves in your favor.

That happens when it goes below equilibrium because the market will

go to a very, very suppressed levels.

And when they go below equilibrium to a discount level, markets will

not sustain discount prices very long if the underlying pinnings

of the marketplace is bullish.

So it gives you two things.

It gives you a context, work with them when you for buys

and it gives you options.

A relative strength study that's built in.

It should be sensitive.

It should be dynamic price action moves away from that equilibrium or less,

more specifically below equilibrium.

So that's where the optimal trade entry idea came from when I was

using the 62% to 79% trade spend levels that you see on my Fibonaccis.

Well, it's this area of 60 to 70.5.

And 79%.

Okay.

And those levels are very, very sensitive, not because of Fibonacci sake, but because

it's really just measuring how far the per the current price range has been.

The algo had a low down here and it had a high here.

This is the total range that we're trading inside of right now.

Okay.

Right now this is, this is right now, current as of today, um,

Friday's close of September 16.

Okay.

So right now we are in the range.

That's been defined by the high and the low here.

So that level of equilibrium still exists, which is here.

So any by condition that occurs below this level here is high probability.

But what does that mean?

That means you just measure every single impulsive price leg higher.

When it moves up.

Actually let's do this.

Let's shade, this area.

And that way we'll understand that.

Anything below anything below here, that's in a high probability or discount market.

Okay.

So now when we, when we understand that we can define every single price leg

that moves up, which is an impulsive price swing when it moves high.

All we have to do is measure the new equilibrium point at which it's created.

And here I'm going to start right here.

There's an impulse price leg right there.

So we have the low up to the high swing high fourth.

Canon's gotta be down.

It does hit equilibrium.

Should it respond?

Yes, it should be dynamic.

Does it go higher?

Yes, it does.

Makes a new high.

Where's it go to Michael above a previous high over here,

and then it trades back down.

Now, here we have equilibrium here, traced equilibrium, and then

aggressively trades through it.

You're probably thinking, oh, it failed.

It does.

That's what's going to happen.

Sometimes you're going to lose it.

I want you to understand that it's not going to be perfect, but it's going

to give you more context than you have right now, especially if you're new.

If you have been looking at price action before you probably have never looked

at it like this in terms of valuation between equilibrium and discount,

and we're going to teach them the importance of that the rest of this

month and the remaining teachings.

But for now, I'm going to introduce you to the idea of viewing price in this country.

Below equilibrium here.

No discount.

We come all the way back down and take out a stop.

Stop runs is what's going to be a different profile.

And if you take a loss, that's what you expect.

You expect this occurrence that happened where the market takes the low out.

Well, if it does take that low out, what is it probably really doing?

It's taking stops out so that it should be a turtle soup, turtle

soup, a false breakout pattern.

We went below that low.

We should see a responsiveness that's aggressive that moves higher.

We see that.

Okay.

Market trades up makes an impulsive price leg

from that low, all the way up to here.

Now watch here's the cool part about this.

We have a swing high and you have the high, the lower high, the lower

high, and the fourth candle is down.

Does it ever get down to the equilibrium?

No.

So we have no trade.

We don't catch anything that keeps going up.

No problem.

I ain't worried about you.

Ain't worried about.

Next price leg we look for.

Okay.

We have this price leg here.

We're only focusing on inside the yellow area.

That's the shaded discount portion of this market.

That's the dollar swissy this current market is a discount below,

below.

This line here.

This is equilibrium at the top of the Hilo shaded area and below it is discount.

So the market should be responsive at levels of discount.

After we, after we see this high form, we look for the high, the swing high,

the form, and the fourth game has got to show willingness to be lower.

It does.

And then we simply just, wait, wait, wait, wait, wait, wait, wait, wait,

wait until it hits the equilibrium and they would go down to a lower timeframes

and we look for trading signals.

There may or may not be, they may or may not have rather than one.

Okay, I'm going to say maybe it took one there and maybe

it took and you took a loss.

Great.

No problem.

You took a loss.

Here's a, here's a losing trade here and here's a losing trade here.

No problem.

We have a winner here.

Market's gone down into a deeper discount.

Look at this swing low over here.

Okay.

This is the building blocks of understanding how institutional overflow

will incorporate for shorter blocks.

When market comes down into a discount and a deep retracement

of this impulsive price.

You're looking at the down candles.

Great at the low.

Okay.

If you have two of them consecutively, it begins at the

top of this candle right here.

So draw that out in time.

The market goes into that area.

This is a buying opportunity.

You would go down to a lower timeframe.

Again, the daily chart is really high.

It's a tight timeframe.

So you're gonna be able to break that down into four hour, 60

minute, 15 minute and five minutes.

Look for buying opportunities.

Yeah, that area for a discounting market immediately aggressively moves away.

When we get that, we get another price leg

and we can take our Fibonacci and measure it to, uh, come

up with another equilibrium.

Doesn't come back down to discount or equilibrium in here.

So we don't have any trade here.

The market rallies, again, from that level, we put our logo on our Fibonacci.

And here's our high here.

So we have a high, a lower high and down candle hit equilibrium.

We'll get a response rallies up trades rate back up to an old, low rejection.

I'm not looking for sell signals.

We're not teaching that here.

Now we have a higher magnitude price swing, all this impulsive price.

When even though it's broken up into three.

You still have to measure that because that's the, there it's the

parent price swing that's currently being traded in right there.

Okay.

So this movement here, then price gets down the equilibrium.

We would study and see if there's a reason to be a buyer.

There's an order block over here.

So there may be in something.

Look at it.

When the lower timeframe, maybe there was a loss.

Maybe you didn't take a trade.

I don't know.

But price goes down into a deeper discount trades rate into bullets over block.

Price hits it.

Does it spend much time there?

No, it rallies aggressively and it fills in an area where price had

already moved in rather quickly.

And I'll just toss this in there for, for, uh, teasing purposes.

It goes right up to the bottom of this bullish candle, which

is a bear shorter block.

And that's an area where you would look to take profits on a long position.

If he did something like that, buying sale, he bought it in may here

in the middle of this range here.

And you got out there.

It's 175 pips factory in brought by 170 pips.

How can anyone be upset with something like that when you're waiting around,

you're not getting a million trades.

Okay.

There's not a lot of this is the daily chart.

So you're getting about one per week, really good high odds opportunities.

So when you see it moves like this, okay, you can see there's a willingness

to, to recapitalize these levels based on the fact that market goes to a deal.

Uh, we have the same print price swing back here.

You always use the same ranges that we're currently in.

This range is still in effect of our comes back down into the seven

times certain chasing level, which is still a deep discount market.

And also it blows out an old whoa.

So there may be some stuff down here.

The market takes out nothing.

If the market's going to go higher, generally.

Now think at the market's going to go higher and it's bullish and it

comes down below an old low that's generally going to be a stop-loss run.

That was the first thing I taught in 2010 to look for dynamic price moves.

If you understand what a bullish market is.

Okay.

You want to define every time the market creates a low and then violates that low.

If it does that generally, that means that the market makers or the institutional

bank in algo will go down below the lows and gather up any orders that

will be resting below those orders.

Um, some blow that low, this low here it's violated here

immediately rejects and goes higher.

This low here.

It goes below here, rejects Emilia and goes higher.

This low here, it goes down below it rejects.

Emily goes higher.

So now think about what I've just given you.

I've given you a framework to map out what equilibrium is.

Okay.

What is that?

And then I told you what the benefit of knowing what below equilibrium is.

So when you're looking for a market, when you're looking at a range in the

marketplace and the market goes below an old low, that gives you context to

look for what stop rates below the lows.

And there should be a reaction going higher.

If the market's bullish, if the market's underlying tone is bullish and

we're going to frame all that stuff.

But for now, I want you to study, go in your charts and you'll see a plethora

of these things occurring all the time.

And it gives you the building blocks of knowing what trading setups

form, how the market should react.

And you'll start seeing these things before they happen.

You want to study them in the past first, but then start looking for

them to anticipate future moves based on what I'm teaching you here.

So in summary, we understand that equilibrium is the

midway point of a range.

We need an impulsive price leg.

Once we identify that an individual impulse price swing.

We run our Fibonacci from the low up to the high, and then

we wait for four candles.

Once those fourth candle is lower than the highest one, we start waiting for

price to come down into equilibrium.

When it does that we can go in and hunt for buying opportunities on the lower

timeframes we blend in institutional order flow ideas, like the order blocks,

mitigation blocks, breakers, turtle soup.

Okay.

And optimal trade entries, all those things, either one of them, any one of

them can be applied for a buying scenario.

But if you ever see the conditions that's bullish and I low is swept out.

That's when you anticipate a turtle suit, the question I get all the

time is, is how do I know if the market's going to keep going lower?

Or if it's going to just go below an old, low, and then.

This is the beginning basis point of knowing when that occurs and when not

to expect it to, uh, to turn around.

So we have, uh, the market reacting off of this at rallies up.

Now we have another price leg right in here.

It took out an old high, so we can go over here, draw a Fibonacci

on that low up to this high.

Price comes down the equilibrium.

We start hunting for buying opportunities right in here on a lower timeframe.

I don't know if there's anything there yet.

You'll have to go in and look into your charts yourself, but we go down into 62%

and tracing level, which is now discount.

Okay.

So when we identify equilibrium, that's the 50% level.

When price goes below 50%, it's at a discount.

When is it the highest probable.

Degree of bullishness at a discount price.

That's when you have this

to fix the two to 79% treatment level in that area right there,

that's the deep discount that we look for in bullish conditions and why

Fibonacci 62 to 78% treatment levels.

Any other time, Fibonacci is going to fail you all the time.

It's the foundations behind price action that caused these indicators to work.

Sometimes even overbought and oversold indicators will work.

If you apply these ideas to them, bullish, divergence.

Trend following hidden divergence.

Okay.

Or type to trend following, which is, uh, really what it is, uh,

developed and discovered by Nick van.

Nice.

And not George Lane, by the way, the, the ideas have to come by

way of sound, price, action.

Understanding if it's not there.

Based on what the foundations of price action are implying,

then it's not going to work.

It doesn't matter what I didn't hear you slap on your chart.

You need to have the underpinnings of the market being dictated by

price action, not by a mathematically derived or crunching of past price

to give you some prognostication.

It doesn't work like that.

The market will not respond to an indicator.

The indicator is only reflecting a mathematical historical reference

of something that price already.

That has no basis on what the market is going to do going forward.

So when we look at markets, we have to number one, define

what these price ranges are.

That means number one, if we're bullish, all we're doing is waiting around.

What are we waiting around for?

Michael?

We're waiting for a price move.

Well I'm with I'm missing all that.

Yeah.

And that's patients traders that make money professionally or manage

funds are not chasing everything that goes on in the marketplace.

They're know exactly what they're looking for.

That once you get a price run like this, it's an impulsive price swing.

Then you wait, what are you waiting for for candles up here?

When the fourth one comes, then you certainly wait for it to

come back down the equilibrium.

Once it gets the equilibrium, you can look for a second.

But I'm stressing.

The difference between equilibrium versus discount is you want it to now go

below equilibrium into 62% minimum down into 79% placement when it does that.

That's when you have the highest probable degree of bullishness, while the market's

in a discount, then you should see explosive price act into the upside.

If you're using a daily chart, you'll be able to use this as a day trader

as a short term trader or position.

Swing trader nothing has been changed in the delivery of what I look for

relative to bullshit order blocks, turtle, soups, all that business.

Here's the cool thing.

If we understand that we're bullish in the discount zone, like we've had

here defined by this a Fibonacci level.

Okay.

Down in this area here, we're looking for specific things to happen.

We're not just looking at.

Um, why did you use the term a zone, but not like zone, like supply and demand zone

in this section or, or, well, let's say here, it's not because it's not really

defined in the sense that it's supply and demand zones, but, uh, it's a total area

of valuation where between equilibrium and less than it's in a discount.

So if you're going to have this as a range to work with them, what inside of the

range are you really specifically looking.

Okay, well, you're looking for specific reference points in

terms of institutional order flow.

That means a stop run.

Like we defined here and here where the market went lower

than a previous low in here.

And then you anticipate what the market to expand it, the upside.

If we understand that that's the occurrence that should take place.

When we're down here and we're looking for bison area.

So if it goes below equilibrium and blows out a Fibonacci level and you

take a loss, just find the low, it just blew out and then expect the

buy signal air then, and then you're buying at a really deep discount.

Then you're going to get an explosive moody upside.

So now if we're using false breaks below previous lows down here, what can you

do to get out of a profitable position?

The same thing you look for a house.

If you're buying down here after stock's been run, you take your profit.

Once this market goes above the previous high over here, mark

makes a lower, low it rallies.

Okay.

It rallies up, starts to retrace where you want to get out at, when it gets

about a old high here's an old high, you take your profits right there.

But wait a minute, Michael, wait a minute.

It didn't go above this one here.

What if I would have held on to that one, then you would.

He gave you two chances to do it, to market me a new high

here, turn back a little round.

And then one more time punched above it.

Get out above and old high markets will distribute, or let me say it this way.

Market makers and smart money will distribute long positions above old highs.

It doesn't have to be the oldest high.

You didn't go over about this one.

You didn't go above this one.

You don't need it to, once it creates a high, they Le they only allow

price to retrace to allow stops, to build up above an old high.

That's how they engineer liquidity.

So when engineered liquidity comes in the marketplace in the form of a buy stop,

protecting a short position that somebody out there, you know, foolishly put in

here, then they'll run price above it.

Hitting those buys stops those buy stocks to come market.

Where's the bite, the market, and they sell to those buys.

Stuffs.

They're long positions.

He made it back here.

That's all institutional.

Understanding the storyline between what the highs and the lows are given you.

If you frame the ranges based on your understanding of what the market

should be bullish or bearish, and that's easy, don't worry about that.

We'll get to that.

But for now, I'm trying to try to Institute a foundation for looking

at price on a hard timeframe, and then managing your expectations

based on what you see on this.

And also building the beginning basis to your anticipatory skills

for looking for future moves.

Wait a minute, Michael, this is S this you just form fitted this one.

This is probably just only working on this chart here.

What happens if you go into, um, what happens if you go into an

hourly chart, suddenly it's all going to be different, right?

It's going to be.

It's all gonna be different.

Well,

here we have a price lag here.

Okay.

Impulsive price swing.

You map that out.

Okay.

Swing high.

Fourth candle.

Doesn't get back down the equilibrium.

No problem.

We wait for it to do it.

It doesn't do it makes another leg higher.

What happened?

We missed it.

Don't worry about it.

Don't chase it.

You know exactly what you're waiting for.

Price makes the new hire high.

So we have the low to the high, what are we waiting for?

Price to get down the equilibrium.

Okay, great.

But what happens when it gets below that we're w we're in a discount market.

We have to go into the what?

62% retracement level minimum right here.

It does.

Does it stay there long?

No way.

It doesn't stay that long.

What happens?

The price moves away from it.

And then what does it do?

It comes back down at the equilibrium again and it expands again.

It consolidates a little bit.

It makes us short-term.

Huh?

Where do you take your profits at Michael above old time, a short term high boom.

It rallies above it, knocks that high out and even comes back and clears

this one out too, just by a little bit.

And then look what happens.

They retrace it all the way back down to equilibrium.

Again, this doesn't spend time much there.

No rallies back up.

Where's it go back to the bottom of this bullish candle, which

is a pair shorter block fills it right to the rate to the PIP.

I'm going to tell you something.

I hate this pair.

I literally hate this pair with a passion because it's this sneaky

pair, like the Japanese yen and you Swiss folks and, uh, Japanese folks,

please don't take offense to that.

I'm just, I don't like your currencies.

Put it that way.

The, uh, the on candles, 97 60.

And the high on this candle comes in at exactly 97, 68.

So you take your profits right there.

Not at that high you exit before you get to that.

Remember, we always want to get out before we get to the actual price.

Like now we have another higher high.

Right here.

See that.

So we're going to wait for price to get down to equilibrium and unless it does it

here again, 62% and 62% retracement level, should it stay there long new does it?

No, it doesn't.

It rallies away.

Retrace it back to equilibrium again.

And then what do we expect it equilibrium.

What did I teach you about?

The algo?

It goes from consolidation, which is always going to be

at equilibrium to expansion.

What's it expanding?

The liquidity.

Where's the liquidity at Ray here before it takes off going vertical.

Where is the liquidity at?

It's above this high and above this high here.

What is it?

Probably stops.

Somebody wants to protect a short position.

So if they're going to buy down here as smart money, they're going to sell

it to who somebody wants to buy it.

A higher price.

The buy stops here and the buy stops here.

Look what happens.

It goes up a little bit, small little retracement and then expands aggressively.

What's it going for the stops right here and then right.

Then once we go above local happens this movement here.

What did I teach you?

I teach that markets move in intraday price action in grades

of 10 there's, 10, 10, and 20 pit rains is above a high that's.

How far they'll reach, where stopped.

But.

There you go, there's your stop run on equal highs.

Remember I told you on your charts, mark out areas where there's equal

highs to, to clean the market's going to want to run there.

So anything below 50% is discount, but it can go back to equilibrium

and consolidate and then expand.

So I'm blending two components giving you introduction to the, uh, the

interbank algo where you'll know what the, what the price engines

were going to do before they do it.

They're going to offer the price higher when it's time to do so, but they're going

to have to capitalize discounted margin.

Before it goes higher.

It won't just go straight up for no reason.

It doesn't, it doesn't operate like that.

The market has to come back down to a discount and below equilibrium,

then you get explosive moves.

Then it may come back to equilibrium to consolidate in a wait for an expansion.

Then the expansion comes and you look for the liquidity about the marketplace.

So the difference between equilibrium is yes, it's fair market value at equal.

We as traders, we want to trade at discounts.

We have to get below equilibrium when it gets into the 62%

retracement level or down into 70.5 or even 79% trace on levels.

You really need to be considering being interested in being long on those markets.

When your underlying bullishness is there waiting for expansion, blending

in all the tools that you'll learn.

Uh, look at the low here.

Okay.

We're below equilibrium.

Here's a low, it comes all the way down.

Hits those right there.

What would you expect even if you didn't see the Fibonacci, what would

you expect that this is a turtle suit?

It's a Ronald stops.

It quickly rejects.

It comes back down.

What is it going to go lower, Michael?

It shouldn't why?

Because it already took the stops out.

So it's only retracing a little bit.

If you took another Fibonacci.

And you put it on this range because we're looking at an hourly chart here.

This would be a smaller price leg in a lower timeframe.

Look what it does.

It goes right back down into optimal trade entry again, below

equilibrium, optimal trade entry.

And does it spend lot of time down here?

No, it rallies up hits a 60% chance.

62% retracement level again, and then expands boom takes off.

There's no magic in Fibonacci.

None.

The only thing it helps you do is visually see what equilibrium is.

And then below equilibrium, where is a good price to enter at a discount.

And here's the benefit.

If it goes lower than the optimal trade entry between 62 and 70, I'm still chasing

labels and you're in line bullishness.

Is there wait for the turtle suit by boom.

It's that easy?

It's that easy.

And you don't believe me.

I know you don't believe me.

That's the beautiful part about this.

And that's why I want you to go into your charts and look for it.

If we have a bullish.

Okay.

And we know that markets are retracing.

You won't need to see the Fibonacci.

You can just eyeball it between this low and this high midway

points about right here.

This market move below.

That is below equilibrium.

It's at a discount.

And guess what?

It cleared out, stops over here.

What's it going to do?

Rally it rallies up equal lows in here to clean market drops down.

What's it doing?

Going down the equilibrium Fibonacci line.

Optimal trade entry.

I'm not going to put the tape on it and you can do it from this

low to this high goes right beyond its optimal trade entry explodes.

Why?

Because it cleared up the equal loads down here.

Boom.

Explodes up to the outside.

What about this low over here, Michael?

Sure.

Come down and cleans it out.

What should happen?

It should expand.

It's bullish.

We're at a discount.

Yeah.

They're only coming down to take the stops below the marketplace out.

These are cell stops.

Why would the market makers want to take the market down to take out cell stuff?

Because it injects people that want to sell to them that want to buy.

They get counter parties to their buy orders.

By having the sell stops tripped below that low boom explodes.

This low rate.

Violated right here.

Not by much.

It doesn't need to be much.

Once I hit that level, then the orders go hot, bang, explodes up the upside.

Well, it doesn't make a new high, Michael.

It doesn't have to, you get exited right here at your old older blocks.

You don't need to have everything out there to come in alignment.

The stars don't have to align to get you a profitable trade.

You just needed a couple things that make sense.

They have to start with equilibrium to discount.

That has to happen.

If you don't get that, you're not going to have these explosive buy signals.

It's going to fall on your lap.

It's not just knowing, give me a bicycle.

Michael.

Tell me when to get in and get out.

This is, this is why I told you.

You have to understand things before just looking for bullets or blocks before

turtle suit longs before optimal trade entry, longs before stochastic divergence.

None of those things work outside of understanding the central

tenant to what a market is at equilibrium or below it at discount.

That's a favorable buying market.

Anything apart from that, you stay away from it.

You wait or look for the opposite side of the market, which is

what we'll talk about next week.

When we look at equilibrium versus premium.